19 March 2009

FSA in New Tough Approach

Lord Turner, chairman of the FSA, has published his review of the UK's financial regulation system - otherwise known as the "regulatory response to the global banking crisis".

In the report, Lord Turner critised the UK government for its "light touch" on banks, allowing the reckless and risky method of making profits which led to so many disastrous near-collapse of banking giants.

Banks have been in the habit of mortgage lending by relying on money markets and not on retail deposits - growth has been rapid but it is based on rocky ground...and many have been accused of not enough regard for the economy as a whole.

Things are set to change, and there will be a clamp down on the entire system - bonuses are to be reassessed as well.

It's a free market, but not as free as it was. The party is over, the drinks have run out and Britain is waking up from a raging hangover. Hopefully this will be the start of a stronger future for the country's economy.

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